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  The net amount a firm would receive if it sold an asset or the net amount it would pay to settle a liability is referred to as: a

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1. The net amount a firm would receive if it sold an asset or the net amount it would pay to settle a liability is referred to as:
   a. current cost
   
   b. net realizable value
   
   c. acquisition cost
   
   d. current replacement cost
2. U.S. GAAP, IFRS, and other major accounting standards are best characterized as:
   
   a. current value accounting models.
   
   b. mixed attribute accounting models.
   
   c. acquisition cost accounting models.
   
   d. historical accounting models.
3. Which of the following assets appears on the balance sheet at Historical cost?
   
   a. Investments in Marketable Securities
   
   b. Accounts Payable
   
   c. Notes Payable
   
   d. Equipment
4. Present value methods are often used with receivables and liabilities:
   
   a. When assets are sold in the middle of the accounting cycle.
   
   b. With payment schedules of less than one year.
   
   c. With payment schedules in excess of one year.
   
   d. When fair values can be easily determined.
5. Disregarding cash flows with owners, over sufficiently long periods of time, net income equals:
   
   a. assets minus liabilities
   
   b. revenues minus dividends and expenses
   
   c. stockholders' equity
   
   d. cash inflows minus cash outflows
6. Which of the following transactions is consistent with recognizing value changes on the balance sheet and income statement when they are realized in a market transaction?
   a. Selling land at a cost greater than its original purchase price.
   
   b. Recording an increase in the fair value of investments at year end.
   
   c. Writing down the value of an asset due to obsolescent.
   
   d. Translating foreign operations accounted for in Yen back to U.S. dollars in order to prepare consolidated financial statements.
7. Shareholders' equity consists of what three components:
   
   a. Assets, liabilities, and contributed capital.
   
   b. Contributed capital, accumulated other comprehensive income, and retained earnings.
   
   c. Liabilities, contributed capital, and accumulated other comprehensive income.
   
   d. Liabilities, contributed capital, and retained earnings.
8. Fish Farm Corporation purchases a new tract of land on which it is going to build new growing and holding tanks in order to expand its business. Which of the following costs would not be part of the cost of the land?
   
   a. costs to run a title search
   
   b. cost of the new holding tanks
   
   c. costs of grading to level the land
   
   d. costs of tearing down an existing structure
9. Firms may not include all income taxes for a period on the line for income tax expense in the income statement. Other places that income tax expenses may occur include all of the following except:
   
   a. Common Stock
   
   b. Discontinued Operations
   
   c. Extraordinary Items
   
   d. Other Comprehensive Income
10. When income tax expense for a period is greater than income tax payable the difference will be reported how and on which financial statement?
    
    a. Deferred tax liability and Balance Sheet
    
    b. Deferred tax asset and Balance Sheet
    
    c. Deferred tax asset and Statement of Cash Flows
    
    d. Deferred tax liability and Statement of Cash Flows